Independent contractors are not treated the same as employees. While independent contractors have more freedom in their work, they also lack some of the protections enjoyed by traditional employees, such as workers' compensation and unemployment benefits. They are also responsible for paying their own taxes directly to the Internal Revenue Service from the first dollar, since their taxes are not withheld by the business that is paying them. If you have a question as to whether you should work as an independent contractor or as an employee, contact an experienced employment law attorney today to discuss your situation.
Los Angeles Employment Law Attorneys Helping Employers
Helping Southern California Businesses Understand Employment Law for Over 20 Years
California employers routinely face numerous employment law legal challenges ranging from wage, discrimination and FMLA disputes and class action suits to the need to train managers and supervisors regarding federal and state employment laws.
The attorneys of the Bononi Law Group, LLP, have worked with hundreds of southern California employers and partner both with smaller firms and Fortune 50 and Fortune 500 firms. For more information regarding employment law and our firm, review the helpful information provide below or call 1-800-641-5548.
Thank you for contacting Bononi Law Group, LLP. Your message has been sent.
Call us now
or use the form below.
The employment law lawyers of the Bononi Law Group, LLP, combine extensive casework experience with a reputation for diligence and excellence. Our team includes legal lectures and educators as well as two attorneys listed as California Super Lawyers. For effective legal help from committed employment law attorneys, call 1-800-641-5548.
Does your firm face an employment law dispute filed by an individual or group? The lawyers of the Bononi Law Group, LLP, have worked with California employers for over two decades. For a no-charge consultation, contact us at 1-800-641-5548.
Independent contractors perform compensated work for businesses and individuals, but they are not considered to be employees. This non-employment relationship is based on an oral or written agreement between the business and the independent contractor. This contract may provide specific standards for the work product and establish the pay rate for that work. Businesses that hire independent contractors generally do not withhold federal or state income taxes or Social Security taxes from payments to independent contractors, and they do not maintain unemployment or workers' compensation insurance for those workers. Most independent contractors, therefore, need to make their own quarterly tax payments.
Independent contractors are usually paid by the project, rather than by the hour. Independent contractors have a higher degree of control over the way they work, and they have the ability to contract with a range of businesses. They do not, however, receive many of the legal protections that employees enjoy. If you are a business or a worker involved in or considering an independent contractor arrangement, you should learn the legal consequences. Contact Bononi Law Group, LLP in Los Angeles, California, today to schedule a consultation with an employment law attorney to discuss your situation.
Rights and Duties of Independent Contractors
Businesses that use independent contractors are not their employers; they are closer to being customers of the independent contractors. Independent contractors have the right to determine certain aspects of the project, such as where and how it should be completed. If you are an independent contractor, the business hiring you is not entitled to direct your work process. Generally speaking, your customer specifies the desired outcome of your work, and you have the freedom to determine how to achieve that outcome.
Defining the Independent Contractor
The United States Supreme Court has determined there is no single rule or test for determining whether individuals are employees or independent contractors. Rather, the determination is made by reviewing the overall relationship and who controls it. Among the factors the Court has considered important are:
- The skill required
- The source of the instrumentalities and tools
- The location of the work
- The duration of the relationship between the parties
- Whether the hiring party has the right to assign additional projects to the hired party
- The extent of the hired party's discretion over when and how long to work
- The method of payment
- The hired party's role in hiring and paying assistants
- Whether the work is part of the regular business of the hiring party
- Whether the hiring party is in business
- The provision of employee benefits
- The tax treatment of the hired party
Factors such as the existence of a formal independent contractor agreement or the worker's licensure by the state or local government are not typical determining elements.
Speak to an Employment Law Attorney
In order to determine whether an individual is an employee or an independent contractor, the relationship between the worker and the business must be examined. The degree of control the business has over the worker should be weighed against the degree of independence the worker has from the business. If you have questions on whether your relationship involves independent contractor or employee status, contact Bononi Law Group, LLP in Los Angeles, California, today to schedule a consultation with an employment lawyer.
Copyright © 2012 FindLaw, a Thomson Reuters business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.